Telekom Austria board remains silent on América Móvil offer

28 May 2014 | Kavit Majithia

Telekom Austria’s board will give no recommendation on América Móvil’s offer to acquire outstanding shares in the company for $2 billion.

Carlos Slim-owned América Móvil is looking to acquire remaining shares in Telekom Austria that are not owned by the government, valued at €7.15 each.

The bid meets Telekom Austria’s valuation of the company, but both the management board and supervisory board of the company have adopted a similar stance.

According to Telekom Austria, the offer price will be justified if its business plan is sustained in core markets including Austria, Bulgaria and Croatia.

América Móvil and Telekom Austria agreed last month to combine stakes of 27% and 28% respectively to give the Latin American company control of the group in return for a guarantee of investments.

A decision on the offer is expected by July 10 2014.